SIBUR reports Q3 and 9M 2021 IFRS results

PJSC SIBUR Holding, the largest integrated petrochemicals company in Russia and one of the fastest-growing companies in the petrochemical industry globally, today announces its operating and financial results for the third quarter and the first nine months of 2021 in accordance with International Financial Reporting Standards (IFRS).

Highlights for Q3 2021:

  • Revenue of RUB 223.4 bln, up 11.2% quarter-on-quarter
  • EBITDA of RUB 107.2 bln, up 11.1% quarter-on-quarter
  • Adjusted net profit of RUB 72.5 bln, up 15.4% quarter-on-quarter
  • Net debt on 30 September 2021 of RUB 359.8 bln, up from RUB 334.7 bln on 30 June 2021
  • Net debt to EBITDA (in both RUB and USD) decreased over the quarter to 1.1x

 

Financial and operating results

 

Financial results

RUB mln, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Revenue (net of VAT and export duties)

223,393

200,856

11.2%

134,016

66.7%

597,633

369,332

61.8%

EBITDA

107,175

96,454

11.1%

48,165

122.5%

277,150

122,031

127.1%

EBITDA margin

48.0%

48.0%

 

35.9%

 

46.4%

33.0%

 

Adj. profit1

72,531

62,828

15.4%

32,903

120.4%

180,268

68,769

162.1%

Net debt/EBITDA

1.1x

1.2x

 

2.8x

       

Operating results

Thousand tons, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Processing and production2

               

APG processing (mln cu. m)

5,360

4,999

7.2%

5,175

3.6%

15,207

16,071

(5.4%)

Raw NGL fractionation

2,092

1,971

6.1%

1,931

8.3%

6,055

5,781

4.7%

Sales volumes

               

Petrochemical products

1,491

1,293

15.3%

1,331

12.0%

4,202

3,745

12.2%

PE

501

383

30.7%

369

35.9%

1,319

920

43.3%

PP

326

291

12.1%

318

2.4%

937

827

13.4%

Other sales

664

619

7.3%

644

3.1%

1,945

1,998

(2.7%)

Midstream products

943

986

(4.3%)

1,069

(11.8%)

2,821

3,395

(16.9%)

Debt

RUB mln, except as stated

30 Sep 2021

30 Jun 2021

Change

31 Dec 2020

Change

     

Total debt

413,138

388,082

6.5%

430,148

(4%)

     

Net debt

359,820

334,689

7.5%

403,247

(10.8%)

   

 

1 Adjusted profit equals profit for the period attributable to shareholders of the parent company, adjusted for foreign exchange gain/loss and result of subsidiaries’ acquisition and/or disposal and remeasurement of related liabilities and/or assets. 2 SIBUR’s share

Peter O’Brien, Chief Financial Officer and member of the Management Board at SIBUR, said:

 

“SIBUR continues to deliver strong operating and financial performance amid a recovery in global demand and positive pricing trends caused by a shortage of supplies due to unfavorable weather conditions in the USA this year. The timely commissioning and launch of ZapSib enabled us to partially mitigate the impact in Russia of the supply-demand imbalance on global markets.

In Q3 2021, revenue grew in all three of our business segments, driving total revenue for the period higher by 11.2% quarter-on-quarter. We continue to focus both on improving operational efficiency across the business and on optimizing brand assortment and logistics, primarily on the domestic market.

“Our financial performance has enabled us to continue reducing leverage. Net debt decreased by more than RUB 43 billion over the first nine months of the year. Together with increased profitability, this has enabled us to reduce our net debt to EBITDA ratio from 2.3x to 1.1x since the beginning of the year.

“We continue to plan and implement key growth projects in line with our sustainability goals, including increasing our use of renewables and reducing emissions per tonne of production. As part of the construction of the Amur Gas Chemical Complex (Amur GCC), in September 2021 we signed a 20-year contract with RusHydro for 1.3 billion kWh of renewable energy per year, which will enable the Amur GCC to operate in line with the highest environmental standards.

“Following the initial announcement in April, we reached a final merger agreement with TAIF. This will considerably expand the scale of SIBUR’s business, and also create new opportunities both for our future growth and for our customers in Russia and around the world.”

 

Financial results

In Q3 2021, revenue increased by 11.2% to RUB 223.4 billion,[1] up from RUB 200.9 billion in the previous quarter, as a result of the following trends across our business segments:

  • Revenue in the Olefins & Polyolefins segment increased by 12.3% to RUB 3 billion. This increase was driven by positive price dynamics and higher sales: sales volumes in this segment increased by 20.3%.
  • Revenue in the Plastics, Elastomers & Intermediates segment increased by 6.6% to RUB 54.9 billion, mainly driven by positive price dynamics in RUB terms across all product categories and a recovery in demand.
  • Revenue in the Midstream segment increased by 17.5% to RUB 56.1 billion due to higher prices for LPG and naphtha on the back of positive price dynamics in international commodity markets, caused by abnormally high natural gas prices and continued growth of crude oil prices this year.

Operating results

In 9M 2021, SIBUR’s gas processing plants (GPPs) processed 15.2 billion cubic meters of associated petroleum gas (APG). Raw NGL fractionation increased by 4.7% year-on-year to 6.1 million tons as a result of increased supplies of feedstocks under long-term contracts with external suppliers. External LPG sales decreased by 22.3% to 2.0 million tons as LPG volumes were redirected for further processing and also as part of our efforts to meet the needs of domestic consumers.

Sales of polypropylene in 9M 2021 increased by 13.4% to 937 thousand tons, and sales of polyethylene increased by 43.3% to 1,319 thousand tons due to an overall increase in production volumes as ZapSibNeftekhim reached full capacity. Sales of plastics and organic synthesis products in 9M increased by 1.4% year-on-year to 611 thousand tons.

 

Borrowings

SIBUR’s Net Debt as of 30 September 2021 amounted to RUB 359.8 billion. The net debt/EBITDA ratio decreased from 2.3x to 1.1x over the first nine months of 2021 due to higher EBITDA and a reduction in the Company’s net debt.

Results by segment

Olefins & Polyolefins

Financial results

RUB mln, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Revenue1

120,773

104,984

15.0%

56,825

112.5%

311,368

148,540

109.6%

External revenue

100,343

89,340

12.3%

51,531

94.7%

263,765

129,250

104.1%

PP

39,448

37,527

5.1%

22,305

76.9%

106,716

56,290

89.6%

PE

49,557

40,685

21.8%

22,624

119.0%

126,238

52,553

140.2%

BOPP films

7,294

7,548

(3.4%)

4,838

50.8%

20,123

14,103

42.7%

Ethylene

2,380

2,358

0.9%

1,149

107.1%

6,930

3,931

76.3%

Other polymers

1,383

925

49.5%

366

277.9%

2,960

1,719

72.2%

Other sales

281

297

(5.4%)

249

12.9%

798

654

22.0%

EBITDA

51,321

51,519

(0.4%)

24,974

105.5%

139,363

56,039

148.7%

EBITDA margin

42.5%

49.1%

 

43.9%

 

44.8%

37.7%

 

Adj. EBITDA2

57,054

58,115

(1.8%)

27,687

106.1%

156,446

63,950

144.6%

Production

Tons, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Production

1,746,664

1,688,747

3.4%

1,513,986

15.4%

5,130,318

4,147,994

23.7%

PP

314,616

317,984

(1.1%)

291,385

8.0%

958,691

795,819

20.5%

PE

465,975

438,526

6.3%

404,884

15.1%

1,341,762

1,049,933

27.8%

BOPP films

38,444

38,307

0.4%

39,713

(3.2%)

111,571

116,684

(4.4%)

Ethylene

572,293

539,281

6.1%

462,915

23.6%

1,649,198

1,325,799

24.4%

Propylene

355,336

354,649

0.2%

315,089

12.8%

1,069,097

859,759

24.3%

Sales

Tons, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Gross sales, including

1,015,138

852,871

19.0%

824,930

23.1%

2,797,119

2,240,021

24.9%

Intercompany sales

94,484

87,856

7.5%

52,384

80.4%

266,987

206,990

29.0%

External sales

920,654

765,015

20.3%

772,546

19.2%

2,530,132

2,033,031

24.5%

Domestic

422,013

394,531

7.0%

407,364

3.6%

1,197,076

927,539

29.1%

Export

498,641

370,484

34.6%

365,182

36.5%

1,333,056

1,105,492

20.6%

1 Including intra-segment transfers; 2 EBITDA adjusted for the Group’s portion of EBITDA of joint ventures and associates and net of the non-controlling interest of related subsidiaries’ EBITDA

SIBUR continued to meet the demand of the Russian market, supporting above all domestic customers.

Production of olefins and polyolefins in 9M 2021 increased by 23.7% year-on-year, while production of polyethylene and polypropylene increased by 27.8% and 20.5%, respectively.

External sales volumes of olefins and polyolefins in 9M 2021 increased by 24.5% year-on-year to 2.5 million tons. Domestic sales volumes increased by 29.1%, while export sales grew by 20.6%.

Plastics, Elastomers & Intermediates

Financial results

RUB mln, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Revenue1

61,100

53,951

13.3%

28,909

111.4%

159,212

88,538

79.8%

External revenue

54,931

51,534

6.6%

28,017

96.1%

148,464

85,141

74.4%

POSP2

21,562

23,088

(6.6%)

11,357

89.9%

61,602

33,315

84.9%

Elastomers

15,131

12,983

16.5%

8,910

69.8%

40,570

28,027

44.8%

I&OC3

13,746

11,987

14.7%

4,924

179.2%

35,879

16,489

117.6%

MTBE and fuel additives4

4,325

3,316

30.4%

2,666

62.2%

9,881

6,772

45.9%

Other sales

167

160

4.4%

160

4.4%

532

538

(1.1%)

EBITDA

14,716

16,566

(11.2%)

4,732

211.0%

42,955

9,985

330.2%

EBITDA margin

24.1%

30.7%

 

16.4%

 

27.0%

11.3%

 

Adj. EBITDA5

14,469

16,710

(13.4%)

4,706

207.5%

42,716

9,961

328.8%

Production

Tons, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Production

1,618,365

1,520,862

6.4%

1,468,973

10.2%

4,749,974

4,400,132

8.0%

Transfers6

94,484

87,856

7.5%

52,384

80.4%

266,987

206,990

29.0%

Purchases from third parties

20,477

18,618

10.0%

46,243

(55.7%)

59,076

148,464

(60.2%)

Production, transfers and purchases

1,733,326

1,627,337

6.5%

1,567,600

10.6%

5,076,037

4,755,585

6.7%

Sales

Tons, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Gross sales, including

588,774

541,329

8.8%

573,261

2.7%

1,713,920

1,763,300

(2.8%)

Intercompany sales

18,409

13,596

35.4%

14,677

25.4%

42,433

50,974

(16.8%)

External sales

570,365

527,733

8.1%

558,584

2.1%

1,671,487

1,712,326

(2.4%)

Domestic

435,170

401,783

8.3%

428,669

1.5%

1,261,553

1,202,006

5.0%

Export

135,195

125,950

7.3%

129,914

4.1%

409,934

510,320

(19.7%)

1 including intra-segment transfers; 2 plastics and organic synthesis products; 3 intermediates and other chemicals; 4 MTBE and fuel components; 5 EBITDA adjusted for the Group’s portion of EBITDA of joint ventures and associates and net of the non-controlling interest of related subsidiaries’ EBITDA; 6 transfers from the Olefins & Polyolefins segment

Midstream

Financial results

RUB mln, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

Revenue1

96,620

77,355

24.9%

52,623

83.6%

246,581

148,854

65.7%

External revenue

56,107

47,757

17.5%

38,583

45.4%

148,006

112,481

31.6%

LPG

27,634

22,929

20.5%

17,835

54.9%

73,223

53,119

37.8%

Natural gas

12,910

11,824

9.2%

11,955

8.0%

35,988

36,836

(2.3%)

Naphtha

13,640

11,867

14.9%

7,507

81.7%

33,881

18,463

83.5%

Other sales

1,923

1,137

69.1%

1,286

49.5%

4,914

4,063

20.9%

EBITDA

45,621

32,709

39.5%

17,757

156.9%

106,994

49,160

117.6%

EBITDA margin

47.2%

42.3%

 

33.7%

 

43.4%

33.0%

 

Adj. EBITDA2

45,633

32,717

39.5%

17,775

156.7%

107,029

49,206

117.5%

Production3

Tons, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

LPG4

1,682,167

1,702,661

(1.2%)

1,585,340

6.1%

5,116,403

4,800,802

6.6%

Natural gas (thsd cu. m)

4,604,373

4,333,943

6.2%

4,449,259

3.5%

13,121,142

13,912,113

(5.7%)

Naphtha

445,129

362,131

22.9%

408,475

9.0%

1,149,169

1,136,705

1.1%

Raw NGL

1,313,922

1,187,224

10.7%

1,310,550

0.3%

3,673,984

3,900,418

(5.8%)

Sales

Tons, except as stated

Q3 2021

Q2 2021

Change

Q3 2020

Change

9M 2021

9M 2020

Change

External sales

               

LPG

648,955

702,805

(7.7%)

767,248

(15.4%)

2,020,882

2,602,232

(22.3%)

Natural gas (thsd cu. m)

4,425,664

4,172,597

6.1%

4,264,445

3.8%

12,562,171

13,331,280

(5.8%)

Naphtha

293,896

282,821

3.9%

301,734

(2.6%)

800,542

792,814

1.0%

1 including intra-segment transfers; 2 EBITDA adjusted for the Group’s portion of EBITDA of joint ventures and associates and net of the non-controlling interest of related subsidiaries’ EBITDA; 3 SIBUR’s share; 4 including ethane-propane mix volumes

In 9M 2021, sales of LPG decreased by 22.3%, as a portion of volumes were redirected for further processing in the petrochemical segment. Sales volumes of naphtha remained practically unchanged from 9M 2020.

The full version of the Consolidated Audited Financial Information as of and for the nine months ended 30 September 2021 in accordance with IFRS is available on our website at http://investors.sibur.com/results-centre/financial-results.aspx?sc_lang=ru-RU .

[1] This indicator reflects only external sales and does not include intra-segment transfers.

International Media Relations
  • Anna Lebed
  • Tel.: +7 (495) 937-17-26
    Fax: +7 (495) 777-55-00
  • E-mail: LebedAI@sibur.ru
Subscribe